Adviser AT YOUR FINANCIAL SERVICE. Life Solutions Wealth Solutions. Super Fast Facts 2006/07

Adviser AT YOUR FINANCIAL SERVICE Life Solutions Wealth Solutions Super Fast Facts 2006/07 Issued July 2006

Important note The information contained in this booklet is of a general nature only and does not take into consideration the objectives, financial situation or needs of any person. This information is intended for the use by financial advisers or other licensed professionals only. It must not be handed to clients for their keeping nor can copies of sections of this booklet be given to clients. The information is given in good faith and has been compiled based on regulatory policy current as at 1 July 2006 and may be subject to change. We recommend that your client refer to their professional tax or legal adviser prior to deciding on a course of action. While we believe the information contained in this document is correct, Asteron Advisory Services Limited gives no warranty of accuracy or liability and no responsibility is accepted for errors or omissions (including negligence). Asteron Advisory Services Limited ABN 12 003 359 251 AFS Licence No 243381 Level 10 321 Kent Street Sydney NSW 2000 Copyright 2006, Asteron Advisory Services Limited

Contents Tax rates and thresholds (incl. Medicare) 2 Tax offset (rebate) entitlements 4 Co-contributions 6 Spouse Contribution 7 Eligibility to contribute & deduction limits 8 Compulsory Super Guarantee (SG) & exemptions 9 Ordinary time earnings 10 Choice of fund 12 ETP and tax rates 13 Termination and redundancy 14 Reasonable Benefits Limits (RBLs) (incl. Indexation & AWOTE factors) 16 Preservation 20 Death benefit ETPs (incl. dependants & tax rates) 22 Retirement income streams 24 Deductible (tax-free) amount 24 Life expectancy tables (2000-02) 25 Payment factors (Term Allocated Pensions) 26 Pre 1 January 2006 Pension valuation factors (Allocated Pensions) 28 Post 1 January 2006 Pension valuation factors (Allocated Pensions) 29 Centrelink 30 Contact list Back cover 1 of 32

Tax rates and thresholds 2006/07 Residents Individual tax rates (residents) 0-6,000 NIL 6,001-25,000 15 cents for every dollar over 6,000 25,001-75,000 2,850, plus 30 cents for every dollar over 25,000 75,001-150,000 17,850 plus 40 cents for every dollar over 75,000 150,001 and over 47,850 plus 45 cents for every dollar over 150,000 Rates shown do not include Medicare Levy of 1.5%. Prescribed rates for resident minors* 0-416 NIL 417-1,307 66% on income over 416 1,308 plus 45% on all income * Child under age 18. Rates shown do not include Medicare Levy of 1.5% Medicare Levy (1.5% of taxable income) Medicare Levy Thresholds (2005/06*) No levy payable Full levy payable Individuals $16,284 $17,604 Individuals eligible for Pensioner Tax offset $19,583 $21,170 Individuals eligible for Senior Australians Tax offset $21,968 $23,749 Families (with no dependent children or students) $27,478 $29,705 Additional amount for each dependent child or student $2,523 $2,728 For income between these thresholds, the Medicare Levy is 20% of the amount exceeding the lower threshold. * The rates for 2006/07 are notified in the 2007 budget. 2 of 32

Medicare Levy Surcharge (1% of taxable income plus reportable fringe benefits) Medicare Levy Thresholds (2006/07) Full levy payable over thresholds (if no private hospital cover) Single income $50,000 Family income $100,000 (with no children or 1 child) Family with 2 children $101,500 Increase per additional child $1,500 Dividend Franking Credit Franking credit = Franked dividend x 30/70 Grossed up dividend = Franked dividend + Franking credit Non-residents Individual tax rates (non-residents) 0-25,000 29 cents for every dollar 25,001-75,000 7,250, plus 30 cents for every dollar over 25,000 75,001-150,000 22,250 plus 40 cents for every dollar over 75,000 150,001 and over 52,250 plus 45 cents for every dollar over 150,000 3 of 32

Tax offset (rebate) entitlements Pensioner tax offset Single Couple (each) Senior Australians tax offset Single Couple (each) Mature age workers tax offset** Range less than $10,000 Tax offset (rebate) 5% of income Low income tax offset Individual Private Health Insurance Can be claimed as either a reduction of premiums, a direct payment, or as a tax offset 15% tax offset for pensions and annuities A 15% tax offset is available on the taxable part of superannuation pensions paid from taxed superannuation funds and qualifying annuities within a taxpayer s RBL, provided that:» The taxpayer is over age 55; or» The pension or annuity is a death or disability benefit. Tax offset is calculated as: (Gross annual pension deductible amount) x rebatable portion x 0.15 * The rebate reduces by 12.5 cents for each dollar of taxable income in excess of the shade-in threshold. ** Must be aged 55 or older and receiving net income from working. *** The rebate reduces by 4 cents for each dollar of taxable income in excess of the shade-in threshold. ^ The rates for 2006/07 are notified in the 2007 Budget. 4 of 32

Income Thresholds (2005/06^) Offset amount Shade-in threshold* Cut-out threshold $1,909 $18,727 $33,999 $1,428 $15,520 $26,944 Income Thresholds (2006/07) Offset amount Shade-in threshold* Cut-out threshold $2,230 $24,867 $42,707 $1,602 $20,680 $33,496 Income Thresholds (2005/06) $10,000 - $52,999 $53,000 - $62,999 $63,000 + $500 $500 - [0.05 x (net income - $53,000)] Income Thresholds Offset amount Shade-in threshold*** Cut-out threshold Nil $600 $25,000 $40,000 Age Less than 65 65 to 69 70+ 30% of premium 35% of premium 40% of premium 5 of 32

Contribution strategies Co-contribution»»» The Government co-contribution is $1.50 for every $1 of eligible personal undeducted contributions Maximum Government co-contribution is $1,500 The minimum co-contribution is $20 Eligibility criteria Individuals may be entitled to a Government co-contribution if during the financial year they:» make an undeducted contribution to a complying superannuation fund or RSA» are not eligible to claim a tax deduction as an eligible person*» have total income^ of less than $58,000» lodge a tax return» are aged less than 71 at the end of the financial year, and» do not hold an eligible temporary resident visa at any time during the financial year. * have at least 10% of total assessable income (plus reportable fringe benefits) paid from employment as an employee. ^ total assessable income plus reportable fringe benefits. Income^ Co-contribution Up to $28,000 Max $1,500 $28,001 - $57,999 Max reduces by 5c for every $1 above $28,000 (refer to formula below) $58,000 or more NIL Formula to calculate co-contribution It is the lesser of: = $1,500 [(income^ - 28,000) x 0.05] or = Undeducted contribution x 1.5 (up to a max of $1,500) ^ total assessable income plus reportable fringe benefits. 6 of 32

Example: Co-contribution payable for personal undeducted contributions of $1,000, $500, $250. Income^ $1,000 $500 $250 $28,000 $1,500 $750 $375 $30,000 $1,400 $750 $375 $35,000 $1,150 $750 $375 $40,000 $900 $750 $375 $45,000 $650 $650 $375 $50,000 $400 $400 $375 $55,000 $150 $150 $150 $58,000 ^ total assessable income (plus reportable fringe benefits) Spouse Contribution Receiving Spouse Under 65 Yes 65 69 Spouse must have worked 40 hours within 30 consecutive days (during the financial year the contribution is to be made) 70 + No contributions Spouse Contribution Offset The offset is calculated as 18% of the lower of:» Total spouse contribution for year, and» $3,000 - (assessable income - $10,800). The maximum offset is $540 with no offset when assessable income is $13,800. Contribution Cocontribution Tax deduction Tax offset Type Self employed Yes (see page 8) No No Employer Yes (see page 8) No No Personal No No Yes (see page 6) Spouse Yes (see No contribution above) No 7 of 32

Eligibility to contribute & deduction limits Undeducted Contribution Limit» Cap on undeducted contributions of $150,000 per person per financial year» There is a $450,000 cap over 3 years to enable larger contributions Note: The limits apply from budget night, 9 May 2006, but are yet to be legislated. Age based contribution limits (2006/07) Age Maximum deduction limit* For personal contributions, the required contribution to obtain the maximum deductible limit Under 35 $15,260 $18,680** 35-49 $42,385 $54,847** 50-69*** $105,113 $138,484** * Employers are able to claim 100% of the contribution up to the employee s age based limit ** A person who earns less than 10% of income as an employee may be eligible to claim a tax deduction for the lesser of: the first $5,000 contributed plus 75% of the balance or the age based contribution limit. *** No deductible contributions from age 70. NOTE: the age based limit is based on the person s age on the day the last contribution was made for that financial year. Age Can I contribute to super? < 65» Yes, anybody under age 65 can contribute to superannuation 65-74» Must have worked 40 hours within 30 consecutive days (during the financial year the contribution is to be made)» Once work test is satisfied, you can contribute for the rest of the financial year 75 +» No (unless mandated employer contributions) 8 of 32

Compulsory Super Guarantee (SG) & exemptions SG contributions» 9% of employee s earning base* Exemptions from paying Super Guarantee include employees who are:»»»»»» paid less than $450 in a calendar month aged 70 or over under 18 years of age and working 30 hours per week or less employed for domestic/private work for 30 hours a week or less (eg: part-time nanny or housekeeper) temporarily working overseas and covered by a bilateral superannuation agreement elects to be exempt because their accumulated superannuation benefits exceed their pension RBL. * generally ordinary time earnings (OTE) unless an award or pre 20 August 1991 earnings base applies. Superannuation guarantee quarter Cut-off dates for SG* payment Due date for lodgement of SG statement and SG charge** 1 Jul 30 Sep 28 Oct 28 Nov 1 Oct 31 Dec 28 Jan 28 Feb 1 Jan 31 Mar 28 Apr 28 May 1 Apr 30 Jun 28 Jul 28 Aug * An SG charge will be incurred if employer contributions are not made by these dates. ** A late payment penalty will be incurred if the SG charge is not paid by these dates. Max SG Contribution Base 2006/07» $35,240 per quarter (SG is not required on income above this level) 9 of 32

Ordinary time earnings Employee remuneration Included in OTE Salary or wages* Allowances paid (other than reimbursement of expenses) Yes Yes Reimbursement of expenses (eg, travel costs) No No Bonuses (not related to performance) No Yes Other bonuses Yes Yes Commission Yes Yes Over award payments Yes Yes Shift loading Yes Yes Overtime No Yes Casual loading Yes Yes Benefits subject to FBT No No Benefits under employee share acquisition schemes paid as a Yes Yes bonus and not subject to FBT Workers compensation payments, including top-up payments where No No no work is performed Workers compensation payments, including top-up payments where Yes Yes work is performed Government (wage) subsidies Yes Yes Payments when on maternity or paternity leave No Yes Pay for annual holiday leave taken Yes Yes Annual leave loading No Yes Pay for sick leave taken Yes Yes Pay for long service leave taken Yes Yes 10 of 32

Employee remuneration Included in OTE Salary or wages* Accrued annual leave, long service leave and sick leave paid as a lump No Yes sum on termination Payments in lieu of notice No Yes Redundancy payments No Yes Other payments made by an employer on termination of No Yes employment Director s fees Yes Yes Payments for performance in, or provision of services relating to, entertainment, sport, promotions, films, discs, tapes, TV or radio Yes Yes Payments to a contractor who is an employee under the SG laws Yes Yes (labour portion only) Dividends No No Partnership and trust distributions No No Payments for entering into a restraint of trade agreement No No Payments for domestic or private work under 30 hours per week No No Top up payments (eg, when serving on jury or with Reserve Forces) No Yes Source: SGR 94/4 and SGR 94/5 OTE = Ordinary Time Earnings * To be used when the employer has a SG shortfall (they have not made the SG contributions by the 28 th day of the month following the quarter). 11 of 32

Choice of fund Choice of fund gives many employees the right to choose the superannuation fund to receive their employer Super Guarantee contributions. All employees have choice with the following exemptions:» Employees of an unincorporated employer who are paid under a State Award (WA currently offers choice under separate rules)» Employees paid under an Australian Workplace Agreement (AWA) or Certified Agreement, if it covers payment of superannuation» Employees who receive contributions under prescribed awards» Employees who are members of an unfunded public sector scheme» Employees of certain defined benefit schemes. All new eligible employees must be supplied with a standard choice form within 28 days of starting work. Default Fund Life cover required*, either:»» Age based (as per table below), or Cover for 50c per week. * Default funds must meet life cover requirements from 1 July 2008. New plans commencing from 1 July 2005 must meet requirement from inception. Age Level of cover 20-34 $50,000 35-39 $35,000 40-44 $20,000 45-49 $14,000 50-55 $7,000 56 or older Nil 12 of 32

ETP and tax rates ETPs include: Unused sick leave Service severance payment Payments in lieu of notice on termination of employment ETPs do not include: Unused long service leave Unused annual leave Tax-free amount of bona fide redundancy payment ETP Components Tax Rate Undeducted 0% Concessional 5% is included in assessable income, and taxed at MTR* Pre 1 July 1983 5% is included in assessable income, and taxed at MTR* Post 30 June 1994 0% invalidity CGT exempt 0% (unless excessive) Under age 55 Post 30 June 1983 20%* (taxed) Post 30 June 1983 30%* (untaxed) Over age 55 Post 30 June 1983 (taxed) Post 30 June 1983 (untaxed) Excess Benefit Tax-free up to $135,590 15%* for amount over $135,590 15%* for amount up to $135,590 30%* for amount over $135,590 Post 30 June 1983 38%* (taxed) component All other components 45%* * Plus Medicare levy Note: thresholds are indexed each year by movements in AWOTE 13 of 32

Termination and redundancy Bona fide redundancy» Can only be paid by an employer to a person aged less than 65,» Up to $6,783** plus $3,392** for each completed whole year of service is tax-free (not an ETP and therefore cannot be rolled over),» Payments above this amount are taxed as an ETP from an untaxed source and can be rolled over. Taxation of leave payments on bona fide redundancy, invalidity or approved early retirement Annual leave payments Any service period Long service payments Pre 16 August 1978 service Post 15 August 1978 service Taxation of leave payments on resignation or retirement Annual leave payments Pre 18 August 1993 service Post 17 August 1993 service Long service payments Pre 16 August 1978 service 16 August 1978 to 17 August 1993 service Post 17 August 1993 service MTR = marginal tax rate * Plus Medicare levy of 1.5% ** These figures apply to payments received in the 2006/07 financial year and are increased by AWOTE each year. 14 of 32

NOTE: From 1 July 2004, employer ETPs rolled over into superannuation are fully preserved and under the proposals in the 2006 Federal Budget, Employer ETPs cannot be rolled into super from 1 July 1007. Tax treatment 100% assessable and taxed at maximum rate of 30%* Tax treatment 5% assessable and taxed at MTR* 100% assessable and taxed at maximum rate of 30%* Tax treatment 100% assessable and taxed at maximum rate of 30%* 100% assessable and taxed at MTR* Tax treatment 5% assessable and taxed at MTR* 100% assessable and taxed at maximum rate of 30%* 100% assessable and taxed at MTR* 15 of 32

Reasonable Benefit Limits (RBLs) Flat dollar RBLs (2006/07) Lump Sum Limit** $678,149 Pension Limit* $1,356,291 An individual may have a higher RBL entitlement (transitional RBL) than these flat dollar limits provided they lodge (or have lodged) an application with the Taxation Office, which is approved. Discounted Lump Sum RBL (under age 55) Discounted Lump Sum RBL = Current lump sum RBL x [1 ((55 current age) x 2.5%)] Which RBL applies for Income Streams? Income Stream Pension RBL* Allocated pension No Term allocated pension Yes Complying term pension Yes Complying lifetime pension Yes * Pension RBL will only apply if the 50% rule is satisfied. ** Individuals under age 55 need to discount their lump sum RBL by 2.5% for each year (whole or part) under age 55. Excess Benefit Excess Benefit = RBL amount of + Sum of indexed RBL Applicable current benefit amounts of previous benefits RBL If <0, no excessive benefit If >0, excessive benefit exists 16 of 32

Amounts Counted for RBLs ETP Component RBL Amount* Qualifying Portion^ Undeducted NIL NIL Concessional NIL NIL Pre 1 July 1983 Super ETP 100% 100% Pre 1 July 1983 Employer ETP NIL # 100% Post 30 June 1983 (taxed) 100% 100% Post 30 June 1983 (untaxed) 85% 100% Post 30 June 1994 Invalidity NIL NIL CGT Exempt 100% 100% * This amount counts towards a person s RBL ^ The qualifying portion is used to determine if the current benefit meets the Pension RBL requirements based on the 50% test # If the employee is an associate of the employer (eg, a director or a partner), 100% of the Pre 1983 component will count towards their RBL. If rolled over, 100% of this component will eventually count towards RBL. 17 of 32

Reasonable Benefit Limits (RBLs) (Contd) Transitional RBL indexation factors The indexation factors (in the table below) are used to index transitional lump sum and pension RBLs up to the current financial year. To index the TRBL from 1994/95 to 2006/07, use the following formula: 2006/07 TRBL = 1994/95 TRBL x 1.695357 To index the TRBL from any other financial year to 2006/07, use the following indexation factors for each year of indexation: 2006/07 1.045 2000/01 1.042 2005/06 1.048 1999/00 1.031 2004/05 1.053 1998/99 1.036 2003/04 1.046 1997/98 1.046 2002/03 1.062 1996/97 1.040 2001/02 1.046 1995/96 1.045 Indexation of previously received benefit Current value = RBL Amount x AWOTE index no for 2nd last quarter* AWOTE index no for payment quarter^ * Two quarters before the quarter in which the current benefit is paid ^ Quarter in which the previous benefit was paid Note: Previous benefits are only indexed if received more than 12 months before current benefit 18 of 32

AWOTE indexation factors for RBLs Year March quarter June quarter September quarter December quarter 1981 270.7 295.1 304.0 285.2 1982 293.5 306.0 317.7 331.5 1983 335.2 336.5 339.8 351.7 1984 353.6 364.9 369.4 375.2 1985 378.0 383.1 388.8 397.1 1986 404.9 408.3 419.8 428.4 1987 429.6 435.6 446.0 450.0 1988 458.8 465.6 470.1 484.5 1989 493.4 501.4 509.7 516.8 1990 524.8 534.5 541.7 554.4 1991 564.3 560.2 567.5 580.1 1992 588.8 587.3 585.7 586.9 1993 595.5 598.0 600.8 603.5 1994 612.3 616.9 620.0 629.9 1995 639.9 647.2 653.1 661.0 1996 665.8 671.2 674.6 685.5 1997 696.1 697.6 704.3 710.9 1998 721.3 725.2 735.4 742.7 1999 743.8 747.3 753.0 764.2 2000 774.8 784.2 796.1 800.4 2001 810.6 824.1 838.5 848.7 2002 860.5 866.8 879.4 889.6 2003 900.4 921.0 929.6 938.4 2004 947.8 949.5 962.9 976.4 2005 992.9 1006.7 1023.2 1025.7 2006 1037.5 19 of 32

Preservation Preservation type Restricted nonpreserved Unrestricted nonpreserved Preserved Access to benefits Access upon termination of employment arrangement with employer who contributed to the account or when meet a condition of release. Access to benefits at any time no restrictions. Access when meet condition of release Conditions of Release» Retirement (refer to preservation ages)» Termination of an employment arrangement at age 60 or older» Reaches age 65» Death» Permanent Incapacity» Temporary Incapacity 1» Severe Financial Hardship 2» Specified Grounds 3» Termination of employment and balance < $200» Temporary residents departing Australia 4» Transition to retirement 5 1 Non-commutable income stream payable for period of incapacity. 2 In some cases access could be limited to $10,000 in a 12 month period. 3 Specified circumstances and approved by APRA. 4 Benefits released for eligible temporary visa holders. 5 Must have reached preservation age and access is limited to a non-commutable income stream. 20 of 32

Preservation Ages Date of birth Preservation age Before 1 July 1960 55 1 July 1960 to 30 June 1961 56 1 July 1961 to 30 June 1962 57 1 July 1962 to 30 June 1963 58 1 July 1963 to 30 June 1964 59 1 July 1964 or later 60 Retirement» Permanent retirement at or after preservation age with no intention to return to gainful employment for 10 hours or more per week. Compulsory cashing restrictions Note: Under the Federal Budget 2006 proposals, super can remain in the accumulation phase indefinitely from 9 May 2006. 21 of 32

Death Benefit ETPs Upon death of a superannuation fund member, SIS legislation allows the deceased s death benefit to be paid to:» the deceased s estate, or» to any person classed as a Dependant for SIS purposes. Dependant SIS Tax Spouse Married Yes Yes Defacto Yes Yes Previous No^ Yes Child* Under age 18 Yes Yes Over age 18 Yes No^ Interdependency relationship** Yes Yes Financial dependant Yes Yes ^ Unless treated as a financial dependant or interdependency relationship. * Defined as birth, adopted or ex-nuptial child. ** An Interdependency relationship is 2 persons who have a close personal relationship, live together and one or each of them provides the other with financial and domestic support and personal care. It includes person(s) who suffer from a physical, intellectual or psychiatric disability as well as samesex couples. Note: A dependant is identified at time of death. 22 of 32

The tax treatment of death benefit ETPs depends on the tax definition of dependant. If paid as a lump sum from accumulation phase, the tax treatment is shown in the table below: Death benefit ETP Non-excessive (up to the deceased s pension RBL) Non-excessive (up to the deceased s pension RBL) Excess Benefit Post 30 June 1983 (taxed) All other components Recipient of ETP Dependant (for tax purposes) Non dependant (for tax purposes) Tax treatment Exempt Post June 1983 component taxed as follows: Taxed amount at 15%* Untaxed amount at 30%* All other components taxed as ordinary ETP Note: there is no post June 1983 tax-free threshold Tax rate 38%* 45%* * Plus Medicare levy. 23 of 32

Retirement income streams Deductible (tax-free) amount Super pensions commencing after 30.6.94 Deductible amount = UPPˆ RCV RN* Super pensions commencing before 1.7.94 Deductible amount = UPPˆˆ RCV RN* ˆ UPP = UDC + CGT Exempt component (applicable after 30 June 1997) + Post June 1994 Invalidity (applicable after 3 June 1998) ˆˆ UPP = UDC + Pre 1 July 1983 + Concessional RCV = Residual capital value * RN = relevant number as shown in table below Product Allocated pension & lifetime pension (single life) Allocated pension & life-time pension (reversionary) Life expectancy (term) pension (single or reversionary) Term allocated pension (single or reversionary) *Relevant Number Life expectancy of owner Longer life expectancy of the owner and the reversionary person Term of pension Term of pension 24 of 32

Life expectancy tables (2000 02) For pensions commencing from 1 January 2005 Age Male Female Age Male Female 50 30.39 34.51 76 10.32 12.63 51 29.49 33.58 77 9.77 11.94 52 28.59 32.66 78 9.24 11.27 53 27.69 31.73 79 8.73 10.61 54 26.80 30.82 80 8.24 9.98 55 25.92 29.91 81 7.77 9.38 56 25.05 29.00 82 7.32 8.81 57 24.19 28.10 83 6.89 8.27 58 23.34 27.21 84 6.48 7.76 59 22.49 26.32 85 6.11 7.28 60 21.66 25.44 86 5.77 6.83 61 20.84 24.57 87 5.47 6.41 62 20.04 23.71 88 5.20 6.02 63 19.24 22.85 89 4.95 5.66 64 18.46 22.00 90 4.74 5.33 65 17.70 21.15 91 4.54 5.03 66 16.95 20.32 92 4.36 4.75 67 16.21 19.49 93 4.19 4.50 68 15.48 18.67 94 4.03 4.28 69 14.78 17.87 95 3.87 4.07 70 14.08 17.08 96 3.73 3.88 71 13.41 16.29 97 3.60 3.71 72 12.75 15.53 98 3.47 3.55 73 12.11 14.78 99 3.35 3.40 74 11.50 14.05 100 3.24 3.26 75 10.90 13.33 25 of 32

Retirement income streams (Contd) Payment Factors (PF) Term Allocated Pensions The table below is used to determine the annual payment for Term allocated pensions. Income may vary by 10% (up or down) each year. This means you can choose to receive between 90% and 110% of the fixed amount calculated each year. Remaining Term Remaining Term PF (years) (years) PF 70 or more 26 52 23.80 69 25.91 51 23.63 68 25.82 50 23.46 67 25.72 49 23.28 66 25.62 48 23.09 65 25.52 47 22.90 64 25.41 46 22.70 63 25.30 45 22.50 62 25.19 44 22.28 61 25.07 43 22.06 60 24.94 42 21.83 59 24.82 41 21.60 58 24.69 40 21.36 57 24.55 39 21.10 56 24.41 38 20.84 55 24.26 37 20.57 54 24.11 36 20.29 53 23.96 35 20.00 26 of 32

Remaining Term (years) PF Remaining Term (years) 34 19.70 17 12.65 33 19.39 16 12.09 32 19.07 15 11.52 31 18.74 14 10.92 30 18.39 13 10.30 29 18.04 12 9.66 28 17.67 11 9.00 27 17.29 10 8.32 26 16.89 9 7.61 25 16.48 8 6.87 24 16.06 7 6.11 23 15.62 6 5.33 22 15.17 5 4.52 21 14.70 4 3.67 20 14.21 3 2.80 19 13.71 2 1.90 18 13.19 1 or less 1.00 Note: The pension account balance divided by the PF gives the annual payment for a financial year. Example: Account balance is $100,000, remaining term is 20 years (PF = 14.21) Pension payment = $100,000/14.21 = $7,040 (Figures are rounded to the nearest $10) PF 27 of 32

Retirement income streams (Contd) Pre 1 January 2006 Pension Valuation Factors (PVF) Allocated Pensions The table below may be used to determine min/max payments for Allocated pensions commenced before 1 January 2006. Age Min PVF Max PVF Age Min PVF Max PVF 20 28.6 10 70 13.5 6.6 50 21.5 9.9 71 13.1 6.2 51 21.2 9.9 72 12.6 5.8 52 20.9 9.8 73 12.2 5.4 53 20.5 9.7 74 11.7 4.8 54 20.1 9.7 75 11.3 4.3 55 19.8 9.6 76 10.8 3.7 56 19.4 9.5 77 10.4 3.0 57 19.0 9.4 78 10.0 2.2 58 18.6 9.3 79 9.5 1.4 59 18.2 9.1 80 9.1 1.0 60 17.8 9.0 81 8.7 1.0 61 17.4 8.9 82 8.3 1.0 62 17.0 8.7 83 7.9 1.0 63 16.6 8.5 84 7.5 1.0 64 16.2 8.3 85 7.1 1.0 65 15.7 8.1 86 6.8 1.0 66 15.3 7.9 87 6.4 1.0 67 14.9 7.6 88 6.1 1.0 68 14.4 7.3 89 5.8 1.0 69 14.0 7.0 90 5.5 1.0 Note: The account balance divided by the pension valuation factors gives the min/max payments in a financial year. Example: a 55-year-old, with a $100,000 account balance. Min = $100,000/19.8 = $5,050 Max = $100,000/9.6 = $10,420 (Figures are rounded to the nearest $10) 28 of 32

Post 1 January 2006 Pension Valuation Factors (PVF) Allocated Pensions The table below may be used to determine min/max payments for Allocated pensions commenced on or after 1 January 2006. Age Min PVF Max PVF Age Min PVF Max PVF 20 29.2 12.0 70 15.1 8.4 50 22.8 12.0 71 14.6 8.0 51 22.5 11.9 72 14.2 7.6 52 22.2 11.8 73 13.7 7.2 53 21.8 11.8 74 13.3 6.7 54 21.5 11.7 75 12.8 6.2 55 21.1 11.5 76 12.3 5.7 56 20.8 11.4 77 11.9 5.1 57 20.4 11.3 78 11.4 4.5 58 20.1 11.2 79 10.9 3.8 59 19.7 11.0 80 10.5 3.1 60 19.3 10.9 81 10.0 2.3 61 18.9 10.7 82 9.6 1.4 62 18.5 10.5 83 9.1 1.0 63 18.1 10.3 84 8.7 1.0 64 17.7 10.1 85 8.3 1.0 65 17.3 9.9 86 7.9 1.0 66 16.8 9.6 87 7.5 1.0 67 16.4 9.3 88 7.2 1.0 68 16.0 9.1 89 6.9 1.0 69 15.5 8.7 90 6.6 1.0 Note: The account balance divided by the pension valuation factors gives the min/max payments in a financial year. Example: a 55-year-old, with a $100,000 account balance. Min = $100,000/21.1 = $4,740 Max = $100,000/11.5 = $8,700 (Figures are rounded to the nearest $10) 29 of 32

Centrelink Social Security (1 July 2006 19 September 2006) Age pension eligibility Age eligibility Men 65 Women (Refer to below table) Women s qualification age for age pension Birth date Pension Age Earliest date of commencement 1/7/1935 to 31/12/1936 60.5 01/01/1996 1/1/1937 to 30/6/1938 61 01/01/1998 1/7/1938 to 31/12/1939 61.5 01/01/2000 1/1/1940 to 30/6/1941 62 01/01/2002 1/7/1941 to 31/12/1942 62.5 01/01/2004 1/1/1943 to 30/6/1944 63 01/01/2006 1/7/1944 to 31/12/1945 63.5 01/01/2008 1/1/1946 to 30/6/1947 64 01/01/2010 1/7/1947 to 31/12/1948 64.5 01/01/2012 After 1/1/1949 65 01/01/2014 Maximum Age Pension Single pensioner $499.70* per fortnight Pensioner couple (each) $417.20* per fortnight A person s age pension is the lower entitlement under the Assets or Income Test. * Pharmaceutical Allowance of $5.80 p.f (per single) or $2.90 pf each for members of a couple is payable in addition to this amount. 30 of 32

Pension Thresholds Assets & Income Fortnightly Centrelink pension is reduced by $3.00 for every $1,000 of assets above the full pension threshold. Full pension ($) No pension ($) Single pensioner Homeowner 161,500 330,000 Non-homeowner 278,500 447,000 Pensioner couple Homeowner (combined) 229,000 509,500 Non-homeowner (combined) 346,000 626,500 Fortnightly Centrelink pension is reduced by $0.40 for every dollar of assessable income above:» $128.00 per fortnight for single pension» $228.00 per fortnight for pensioner couple Deeming rates Applies to financial investments including cash, term deposits, shares and managed funds. 3% 5% Single Up to $38,400* Over $38,400* Pensioner couple^ Up to $63,800* Over $63,800* Non-pensioner couple Up to $31,900* Over $31,900* ^ Pensioner couple means at least one member of the couple receives a pension. * Thresholds are indexed annually on 1 July. 31 of 32

Centrelink (Contd) Assessment Income Stream & Super (Purchased from 20 September 2004) Product Asset value Income value Complying lifetime pension Complying term pension Term allocated pension Allocated pension 50% of purchase price 50% of purchase price 50% of purchase price Gross pension less deductible amount * Gross pension less deductible amount ** Gross pension less deductible amount ** 100% of Gross pension less purchase price deductible amount * * Purchase price divided by the life expectancy (longest life expectancy in the case of a reversionary pension). ** Purchase price divided by the term. Superannuation Asset test Income test Under pension age Exempt Exempt Pension age and over Asset tested Deemed Newstart Income & Assets* Income test Rates Threshold pf Reduction rate Single no $410.60 pf First $62 nil children $62 - $250 50 cents Single with $444.20 pf $250+ 60 cents children Partner reduction Single^ 60 cents rate over $710.84 (60+) Partnered (each) $450.00 pf $370.50 pf * If assets exceed lower asset thresholds for pensions (refer page 31), no allowance is payable. ^ After 9 months on payment. 32 of 32

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Contact List ATO Super Help Line: 13 10 20 Website: www.ato.gov.au Centrelink Disability, Sickness & Carers: 13 27 17 Website: www.centrelink.gov.au FACS Website: www.facs.gov.au DVA Website: www.dva.gov.au Infoline: 133 254 Choice Website: www.superchoice.gov.au Infoline: 13 28 64 APRA Website: www.apra.gov.au Phone: 1300 131 060 ASIC Website: www.asic.gov.au AT YOUR FINANCIAL SERVICE A901 07/06